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Grain Futures Prices Mostly Lower

Tuesday's Closing Grain and Livestock Futures Prices

Sep. corn closed at $3.60 and 1/4, down 3 and 3/4 cents
Aug. soybeans closed at $11.84, up 8 and 1/4 cents
Aug. soybean meal closed at $381.80, up $1.10
Aug. soybean oil closed at 35.93, down 21 points
Sep. wheat closed at $5.24 and 1/2, down 5 and 1/2 cents
Aug. live cattle closed at $155.95, up $3.00
Aug. lean hogs closed at $127.57, up $2.47
Aug. crude oil closed at $104.42, down 17 cents
Oct. cotton closed at 68.80, up 29 points
Aug. Class III milk closed at $21.40, up 7 cents
Aug. gold closed at $1,306.30, down $7.60
Dow Jones Industrial Average: 17,113.54, up 61.81 points

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Agri Markets News Review

Soybeans were mostly lower, adjusting old crop/new crop spreads. Chinese demand continues to be strong and unknown and Vietnam both bought new crop U.S. bean meal. Unknown purchased 225,000 tons and Vietnam bought 180,000 tons, while unknown also picked up 20,000 tons of 2014/15 soybean oil. Still, with the crop in great shape, the fundamental outlook for new crop remains bearish, sending November to a new contract low. Soybean oil was mixed, adjusting old crop/new crop spreads, and bean oil was lower on spillover from crude oil.

Corn was lower on fund and technical selling. Contracts saw an early bounce, but couldn’t follow through, also looking at negative fundamentals, pushing December to a new contract low. At this point, the biggest question in corn is just how high this year’s yield will be. There’s a lot of talk that it may hit 170 bushels per acre. USDA’s first survey based production projection is out in August. Ethanol futures were higher.

The wheat complex was lower on fund and technical selling, along with the mostly higher dollar. 75% of the winter crop is harvested and while there’s some rain in the forecast, major delays aren’t expected. 70% of spring wheat’s rated good to excellent, with non-threatening weather in the forecast. Overall, the fundamentals remain bearish, primarily due to the large world crop and good global growing conditions.

The feedlot cattle trade remained at a standstill on Tuesday afternoon with some not expecting significant business until late in the week. Asking prices seemed to be firming in the wake of sharply higher futures. Most showlists appear to be priced around 158.00 plus in the South and 250.00 plus in the North. The kill totaled 117,000 head, 1,000 more than last week, but 4,000 less than last year.

Boxed beef cutout values were sharply higher in the afternoon report on good demand and moderate offerings. Choice beef was up 2.28 at 252.80 and select was 1.71 higher at 245.79.

Chicago Mercantile Exchange live cattle contracts settled 155 to 300 points higher with the August finishing with limit gains. This kept front month futures from moving to new contract highs, but the momentum seen in the market could easily draw additional buyers back into the market on Wednesday, sparking another aggressive round of buying. There was very little new direction seen in the market, although the focus through the session was once again being paced on the ability to sustain strong summer demand and raise questions about the ability to gain access to market ready cattle over the near term. August settled 3.00 higher at 155.95, and October was up 2.62 at 157.87.

Feeder cattle settled 242 to 300 points higher with all remaining 2014 contracts locked limit up. The continued pressure in the corn market as well as expectations that cattle and beef supplies will continue to tighten through the late summer and early fall created a swarm of buyer interest into the market. August settled at 216.02, and September at 216.77 with both up the 3.00 limit.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 5700 head. Steer and heifer calves were weak in a light test. The demand was good for most all classes. Quality was typical of the summer and plain and average. Feeder steer calves medium and large 1 weighing 550 to 600 pounds ranged from 241.00 to 250.00. 650 to 700 pound yearlings brought 223.00 to 234.00. 500 to 575 pound heifer calves traded from 226.00 to 235.00. 650 to 700 pound yearling heifers’ brought209.00 to 216.00.

Lean hogs settled unchanged to 247 higher. The early pressure in the lean pit was quickly replaced by moderate to strong gains following the limit higher moves in the cattle complex. August settled 2.47 higher at 127.57 and October was up .75 at 113.45.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.63 lower at 126.02 weighted average on a carcass basis, the West was down 1.52 at 125.97, and the East was .63 lower at 125.94. Missouri direct base carcass meat price was steady from 119.00 to 122.00. Midwest barrows and gilts were fully steady on a live basis from 89.00 to 96.00.

The pork carcass cutout value was 1.15 lower at 133.84 FOB plant. The belly primal was responsible for much of the loss, down over 10.00.

While the belly primal calculated sharply lower again on Tuesday in light volume, the speed bump looks temporary with good seasonal strength expected to continue for another two to three weeks. Furthermore, sources in the ham trade continued to be impressed with the potential for third-quarter ham demand.

The hog kill was estimated at 398,000 head, 1,000 more than last week, but 2,000 less than last year.

 

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